THE ECONOMIC TIMESBy Vivek Rege
Q: My FD is going to mature on February 17 and I will have Rs 5,00,000. Please advise which mutual fund to invest the lump sum amount in. Also, I am yet to invest for 80C deduction. I was thinking of Birla Sun Life Tax Relief 96 direct plan growth. What do you think? --- Aseem Goyal
A: You seem to be a first-time investor in mutual funds, having a history of parking in fixed deposit and since your risk appetite is not known, we can say that your bias is conservative, therefore, my suggestion would be to invest in monthly income plan e.g. SBI Magnum Monthly Income Plan, with at least a 3-year time horizon, anything below this, you should look at an accrual fund e.g. Birla Sunlife Short term opportunities funds direct plan growth. For tax saving under section 80C, Birla Sun Life Tax Relief 96 is a good choice.
Q: I want to invest in mutual funds for 10-15 years through monthly SIP. Rs 2,000 in (DSP-BR Micro Cap Fund RP (G)) and Rs 3,000 in (Mirae Emerging Bluechip Fund (G)). My goal is to achieve 10 per cent and above annual return. I am at an age to take risk. Kindly suggest, whether my picks are good or are there other funds, which can give me better returns? --- Manoj
A: With limited information about your risk appetite except that you are young, and with 10-15 years of investment horizon and return expectations of at least 10 per cent, the funds you have chosen are reasonably good in the small and mid-cap category. One thing to be considered is DSP BlackRock Micro Cap fund has stopped taking fresh inflow until further notice. With this in mind, you may want to look at other funds in the category like Kotak Emerging Equity Fund.
Q: Hi, I am a 20-years old college student. I wish to start investing in mutual funds, and start a Rs 2,000 SIP for the start. Could you suggest some funds which will offer me long-term benefits. Risk is no factor for me ---- Gautam Bajaj
A: I am happy to see that you are starting young, at this stage with limited information about your risk appetite, always start with a balanced fund e.g. HDFC Balanced Fund or L&T Prudence Fund. Once you get a reasonable investment experience, you have a wide choice.
Vivek Rege, Founder & CEO, VR Wealth Advisors
Q: My FD is going to mature on February 17 and I will have Rs 5,00,000. Please advise which mutual fund to invest the lump sum amount in. Also, I am yet to invest for 80C deduction. I was thinking of Birla Sun Life Tax Relief 96 direct plan growth. What do you think? --- Aseem Goyal
A: You seem to be a first-time investor in mutual funds, having a history of parking in fixed deposit and since your risk appetite is not known, we can say that your bias is conservative, therefore, my suggestion would be to invest in monthly income plan e.g. SBI Magnum Monthly Income Plan, with at least a 3-year time horizon, anything below this, you should look at an accrual fund e.g. Birla Sunlife Short term opportunities funds direct plan growth. For tax saving under section 80C, Birla Sun Life Tax Relief 96 is a good choice.
Q: I want to invest in mutual funds for 10-15 years through monthly SIP. Rs 2,000 in (DSP-BR Micro Cap Fund RP (G)) and Rs 3,000 in (Mirae Emerging Bluechip Fund (G)). My goal is to achieve 10 per cent and above annual return. I am at an age to take risk. Kindly suggest, whether my picks are good or are there other funds, which can give me better returns? --- Manoj
A: With limited information about your risk appetite except that you are young, and with 10-15 years of investment horizon and return expectations of at least 10 per cent, the funds you have chosen are reasonably good in the small and mid-cap category. One thing to be considered is DSP BlackRock Micro Cap fund has stopped taking fresh inflow until further notice. With this in mind, you may want to look at other funds in the category like Kotak Emerging Equity Fund.
Q: Hi, I am a 20-years old college student. I wish to start investing in mutual funds, and start a Rs 2,000 SIP for the start. Could you suggest some funds which will offer me long-term benefits. Risk is no factor for me ---- Gautam Bajaj
A: I am happy to see that you are starting young, at this stage with limited information about your risk appetite, always start with a balanced fund e.g. HDFC Balanced Fund or L&T Prudence Fund. Once you get a reasonable investment experience, you have a wide choice.
Vivek Rege, Founder & CEO, VR Wealth Advisors
( Originally published on Feb 20, 2017 )
Read More News on
(Your legal guide on estate planning, inheritance, will and more.)
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Read More News on
(Your legal guide on estate planning, inheritance, will and more.)
Download The Economic Times News App to get Daily Market Updates & Live Business News.
